9911796707
TMI Blog1992 (2) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants were directed to approach the sponsoring authority for obtaining recommendatory letter and from March 1983 onwards the appellants wrote to the sponsoring authority in this regard. On 25-1-1984, the Director of Industries intimated to the appellants that their case of Project Import will be considered as and when they made arrangements for the premises, power and Municipal Corporation Licence. In the meanwhile, the machines arrived at Bombay and were subsequently transferred to the warehouse at Okhla, New Delhi. By letter of 7-5-1985 the Director of Industries wrote to the Asstt. Collector of Customs informing the Customs Department that the case of the unit has been recommended for initial setting up of the unit. The contract was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as the import licence was issued by the Chief Controller of Imports Exports on the recommendation from the Director of Industries after the scheme for installation of the plant has been approved. As the registration of contract was applied for as early as on 25-2-1983, the objection of the Customs Department that the registration of contract could only be effected on the receipt of recommendatory letter from the sponsoring authority was not in accordance with the statutory provisions of Heading 84.66, according to the appellants. We are unable to accept this contention. As pointed out by the Learned SDR when the appellants applied for registration of contract in February 1983, they were directed to produce the recommendation of the spon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformed the appellants that their case of Project Import would be considered as and when arrangements were made for premises, power and Municipal Corporation Licence. This itself would go to show that there was no recommendation of the sponsoring authority prior to this date and it was only on 7th May, 1985 that the sponsoring authority wrote to the Assistant Collector of Customs that the unit has requested for recommendation for concessional rate of customs duty under Project Import as provided under Heading 84.66 and the case of the unit has been examined by Industries Department and recommended for initial setting up of the unit. In this case the contract was registered after the order was passed permitting clearance of imported goods fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Collector that the main contract was not registered as Project Import seems to be without any bearing on the issues involved because the requirement that the appellants have to establish is only that the imported machinery is to be used either in the initial setting up of an industrial plant or for substantial expansion thereof since they do not claim it as an auxiliary equipment for registered contract. The Tribunal remanded the matter to the lower authorities for de novo adjudication. Similarly, in the case of Bharat Heavy Electricals Ltd. v. Collector of Customs, Bombay - Order No. 273-B/84, dated 10-4-1984 - it was held that it was for the appellants to satisfy the Customs authorities at the time of import and before clearance that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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